US Justice Department Closes Investigation of CrowdStrike Deals

US prosecutors have closed an investigation into deals CrowdStrike Holdings Inc. made with a distributor without taking further action, according to people familiar with the matter.

Since at least early 2025, federal prosecutors and regulators had been investigating CrowdStrike’s handling of the transactions, including what executives may have known about them, Bloomberg News has reported. The Austin, Texas-based cybersecurity firm has acknowledged in regulatory filings that the Securities and Exchange Commission and the Department of Justice have inquired about some deals.

In July, Justice Department lawyers told people involved with the probe that they’d concluded their examination and wouldn’t be bringing any criminal or civil actions, according to some of the people. They all spoke on condition that they not be named because they weren’t authorized to discuss the matter.

Prosecutors at the Manhattan-based US attorney’s office didn’t explain to the people involved what, if any, conclusions they’d come to or why they were closing the investigation, some of the people said. It’s unclear whether the SEC’s investigation has also concluded.

CrowdStrike representatives didn’t respond to calls and emails seeking comment Thursday and Friday. In an August regulatory filing, the company said it was cooperating with DOJ and SEC requests for information about its accounting for “transactions with certain customers.”

Representatives of the SEC and the US Attorney’s Office for the Southern District of New York, which was conducting the investigation, declined to comment.

Read More: CrowdStrike, Carahsoft Made Deal For Software IRS Didn’t Buy

Among the deals prosecutors were scrutinizing was a $32 million transaction with distributor Carahsoft Technology Corp. to supply cybersecurity software to the Internal Revenue Service. The IRS didn’t purchase or receive the products, Bloomberg reported in October, 2024. Still, Carahsoft made on-time payments for the order, CrowdStrike said at the time. Carahsoft said it stood by the transaction.

Around the time CrowdStrike closed the deal on the last day of a fiscal quarter in 2023, some staff raised concerns because they viewed the transaction as incomplete, and it was unclear whether the tax agency would ultimately make the purchase.

The transaction, which Chief Executive Officer George Kurtz highlighted on an earnings call, was big enough that it could have made the difference between CrowdStrike beating or missing Wall Street projections on two key financial metrics for the quarter in which it closed.

Read More: US Probes Role of CrowdStrike Bosses in Carahsoft Deal

A CrowdStrike representative previously said the employees’ concerns were baseless and the order’s timing insignificant. In addition, the Carahsoft deal went through an extensive review and was given a clean bill of health, the representative said.

A Carahsoft representative, Mary Lange, didn’t comment when reached by phone Friday.